FMB says more jobs could have been created by investing in green initiatives instead of auto industry and roads

The Federation of Master Builders (FMB) has accused the government of missing an opportunity by pumping money into the car industry and roadbuilding rather than insulation.

In a joint report with Greenpeace and the Liberal Democrats, out today, the body has said investment in improving the nation's insulation would have created more jobs for the money, while reducing the country's carbon footprint.

This comes on the same day as two other reports are published, urging leaders to use the recession to drive a new, environmentally friendly economy.

A separate report says G20 nations can help global financial recovery through building a low-carbon economy

Lord Stern is set to launch a report today calling on the G20 nations to invest heavily in energy efficiency and green technology.

The former chief economic adviser to the Treasury will urge governments to commit to large-scale demonstration projects for carbon capture and storage as well as concentrated solar power in the study, commissioned by the German government.

The report, which also calls for new electricity grids and a rise in the price of emitting carbon, claims the G20 nations can help global financial recovery through building a low-carbon economy.

Meanwhile, think tank the New Economics Foundation has criticised the UK for failing to use its economic stimulus package to invest in green technology. It says Britain has invested least in renewable energy of all the rich nations.

The report's author, Andrew Sims, said: “The prime minister says he is creating green jobs but this is a fantasy. The government's performance is pathetic."

The government has promised to drive more than £50bn of investment into clean energy generation between 2008 and 2011.